The Analytical Overview of the Main Currency Pairs on 2018.10.04

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.15457

Open: 1.14732

% chg. over the last day: -0.61

Day's range: 1.14634 – 1.14909

52 wk range: 1.0571 – 1.2557

Negative dynamics is still observed on the EUR/USD currency pair. Yesterday, the drop in quotes exceeded 70 points. The trading instrument updated local lows. The American currency was supported by positive economic reports from the USA. At the moment, the EUR/USD currency pair is consolidating near the local support of 1.14650. The mark of 1.15150 is already a “mirror” resistance. The EUR/USD quotes are tending to further decline. Positions must be opened from the key levels.

Today the news feed is rather calm:

- The number of initial jobless claims in the US at 15:30 (GMT+3:00);

- Factory orders in the US at 17:00 (GMT+3:00).

The price has fixed below 50 MA and 200 MA, which indicates the power of the sellers.

The MACD histogram is in the negative zone, which indicates the bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy EUR/USD.

Trading recommendations

Support levels: 1.14650, 1.14250, 1.14000

Resistance levels: 1.15150, 1.15650, 1.15900

If the price consolidates below the local support of 1.14650, a further drop in the EUR/USD quotes is expected. The movement is tending to 1.14250-1.14000.

An alternative could be the growth of the EUR/USD currency pair to the level of 1.15300-1.15600.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.29770

Open: 1.29363

% chg. over the last day: -0.30

Day's range: 1.29219 – 1.29613

52 wk range: 1.2361 – 1.4345

The bearish sentiment prevails on the GBP/USD currency pair. Pressure on the pound is pout by weak data on economic activity in the UK. At the moment, the GBP/USD quotes are testing the local demand zone of 1.29250-1.29400. The nearest resistance is at 1.29750. Trading instrument is tending to further decline. We recommend opening positions from the key levels.

Today, the news feed on the UK economy is calm.

The price has fixed below 50 MA and 200 MA, which indicates the bearish sentiment.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates that GBP/USD is rising.

Trading recommendations

Support levels: 1.29250, 1.29000

Resistance levels: 1.29750, 1.30150, 1.30600

If the price fixes below 1.29250, a further drop in the GBP/USD quotes is expected. The movement is tending to 1.29000-1.28750.

An alternative could be the growth of the GBP/USD currency pair to the level of 1.30000-1.30250.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28233

Open: 1.28656

% chg. over the last day: +0.45

Day's range: 1.28615 – 1.28880

52 wk range: 1.2059 – 1.3795

The USD/CAD currency pair has started to recover after a sharp fall in late September. At the moment, the quotes are consolidating. The key trading range is 1.28600-1.29000. Demand for US currency remains high. In the near future, we do not rule out further correction of the USD/CAD currency pair. We recommend opening positions from the key levels.

At 17:00 (GMT+3:00) the economic activity index in Canada from Ivey will be published.

Indicators do not give accurate signals: the price has fixed between 50 MA and 200 MA.

The MACD histogram is in the positive zone and continues to rise, which indicates the growth of the USD/CAD quotes.

Stochastic Oscillator is in the neutral zone, the %K line is below %D line, which sends a signal to sell USD/CAD.

Trading recommendations

Support levels: 1.28600, 1.28400, 1.28000

Resistance levels: 1.29000, 1.29400, 1.29700

If the price is consolidating above the round level of 1.29000, a further correction of the USD/CAD currency pair is expected. The movement is tending to 1.29400-1.29700.

Alternative option. If the price fixes below 1.28600, you need to consider selling USD/CAD. The movement is tending to 1.28300-1.28000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 113.632

Open: 114.503

% chg. over the last day: +0.74

Day's range: 114.217 – 114.549

52 wk range: 104.56 – 114.74

There is a pronounced uptrend on the USD/JPY currency pair. Yesterday, the growth of quotations exceeded 80 points. The trading instrument overcame and fixed above the key mark of 114.000. At the moment, the USD/JPY currency pair is consolidating in the range of 114.200-114.500. We do not exclude further growth of the USD/JPY quotes. We recommend paying attention to the yield of US government bonds.

The news feed on the Japan's economy is calm.

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line has started to cross the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 114.200, 114.000, 113.800

Resistance levels: 114.500, 115.000

If the price fixes above the resistance level of 114.500, further growth of the USD/JPY quotes is expected. The movement is tending to the round level of 115.000.

An alternative may be the correction of the USD/JPY currency pair to the level of 114.000-113.800.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.